Contractor sues City of Morden after Morenet internet service contract terminated

Contractor sues City of Morden after Morenet internet service contract terminated

A contractor hired to develop internet service for the city of Morden, Man., is now suing for half a million dollars, alleging in a lawsuit the city wrongfully disclosed confidential information about the technology to competitors. Sergii Polishchuk, along with his company Infotec Manitoba, was hired in 2018 to develop infrastructure for high speed broadband internet access to be available to all residents throughout the city, says the statement of claim filed in Manitoba Court of Queen's Bench. The service was going to be called Morenet. But Morden cancelled the agreement with Polishchuk at the end of 2019. The lawsuit, filed July 15, alleges information about the technology Polishchuk designed was to be treated as confidential and that the market for such technology is highly competitive. It claims information provided by Polishchuk to the City of Morden "was wrongfully disclosed by [the city] to third parties, including competitors of Polishchuk." By allegedly giving third parties access to the information and technology, "the defendant thereby breached its duty and obligation to keep the technology confidential," the lawsuit states. The allegations have not been tested in court and the city has not yet filed a statement of defence. Polishchuk is seeking $524,400 plus applicable taxes allegedly owing under the Morenet service agreement he signed with the city. It also seeks almost $24,000 under a separate "IT service agreement" Polishchuk had with Morden for maintaining the city's computer system under a December 2018 contract. After a proposal call last January, Morden city council decided ...
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